We propose an alternative approach to quantifying a firm’s value-based management (VBM) sophistication. The approach uses natural language processing (NLP) and builds on a newly developed, customised dictionary. We describe the development of this dictionary and validate the resulting measure for a large sample of European listed firms (STOXX Europe 600 Index) using tests of internal consistency, construct validity, and relevant robustness checks. In doing so, we present a novel application of NLP in management accounting. We also contribute a customised, open-source dictionary for the measurement of VBM sophistication thereby creating opportunities for future research.